What is property indemnity insurance?
Simply put, it is a type of insurance that protects the future owner from future problems with the property they are buying, including legal issues regarding aspects of the home or action from a municipality against the lack of required certificate.
When used in the home buying market, indemnity insurance usually refers to an insurance that lasts forever and covers all the costs a buyer faces due to an existing problem with a property he is buying. Therefore, it is important that owners know where the property deeds are or that they take steps to obtain new copies.
It is not mandatory to obtain compensation insurance when buying a home, and is usually only necessary in cases where a lawyer advises you to buy insurance.
What does indemnity insurance usually cover?
Indemnity insurance helps protect against potentially very costly problems with a property or problems that can take a long time to resolve. If you have a policy, it means that the buyer does not have to solve the problem himself.
Planning permit missing – Some landlords make extensions or other changes to their properties without obtaining the necessary permission from the local council. Compensation insurance will protect a future buyer from any legal action the council may take against the home or apartment because he has not approved proper planning.
Restrictive agreements – Are agreements in deeds that restrict the use of property, such as the requirement to give certain persons access to something on the plot. Compensation insurance provides adequate protection for a buyer if a future breach of the restrictive agreement leads to legal problems.
Is indemnity insurance a necessary purchase with every home sale? Talk to your attorney who prepares the paperwork for buying or selling your home, and they can tell you if you can go ahead without home insurance, or if it’s a good buy.